Tadawul Review:

Tadawul Review: Tadawul All Share Index (TASI) ended in gains for the second consecutive day to add a further 56 points (+0.5%) and ended a volatile session at 11,727 levels. This is TASI’s highest closing since 16th June. The market opened negative and soon touched its low of 45 points before investors bought the dip helping the index to climb to a high of 113 points by mid-day. However, towards the closing, some profit booking was witnessed suppressing the overall gains. Banks (+0.6%), Energy (+0.9%), and Materials (+0.2%) were the major index drivers. Amongst the stocks, SNB (2.9%), ARAMCO (+0.9%), and SABB (+2.8%) contributed the most to the index gains. Overall, trading activity recovered as volume and value traded rose by 12% and 14% DoD to 167mn shares and SAR5.9bn. The market may look to consolidate at current levels given Brent oil's recent rally rising by 6.8% WoW to USD119/bbl levels.

 

 

 Market Wrap International:

The global equity indices underwent a rather muted session on Wednesday. US stocks fell for the third consecutive day as the latest data released on Consumer Confidence in the U.S missed consensus estimates. This coupled with overshooting of the CPI data in Spain (multi-decade high) added to investors’ nervousness and brought back focus on the global recession. CPI in Germany for June-2022 came below expected but failed to keep a lid on bond yields. In the U.S, the S&P 500 Index see-sawed during the day and settled at 3,819 levels (-0.1%). Energy, real estate, and materials sectors lead the losses while healthcare and consumer staples rose.

In Europe, the Stoxx Euro 600 Index partially recovered from a deeper intraday loss to close with -0.7%. The investors are keeping a close on yields on sovereign bonds and the implementation of the recently announced new tool by the ECB in the backdrop of the above-expected CPI reading and movement in yields.

In Asia, the overnight data release in the U.S provided an excuse for the indices to take a breather following a strong recovery in most indices in the past four sessions. The Chinese central bank asserted its commitment to supporting growth in the latest release of its quarterly report. Tech names were particularly battered across the region and dragged tech-heavy indices down (KOSPI: -1.8%, TAIEX: -1.3%). Profit-taking in HangSeng (-1.9%) and Shanghai Composite (-1.4%) was more pronounced.